Manager Due Diligence

In our experience, an investor’s relationship with their manager is based on many factors in addition to investment performance. Relationships generally break down when trust has been lost, usually because expectations have not been met. The possibility of this occurrence, sometimes termed the ‘risk of disappointment’, is a function of many aspects of the investment experience, e.g. service standards, communication or fee levels. All may be forgiven during periods of strong performance, but often differences resurface once performance becomes weak.

The strongest client/manager relationships are built on a sound understanding of client needs and manager capabilities. Taking time to assess the client and their situation will pay dividends in the future, but a similar amount of time should also be spent assessing all aspects of a manager’s investment offering.

ARC has an intimate knowledge of a wide universe of investment managers, based on:

Our programme of on-site and in-house manager visits;

Our unrivalled database of model and real portfolio performance;

Our accumulated experience of consulting on client accounts with over 100 investment managers; and

Our proprietary due diligence process.

Free Access Due Diligence Questionnaires

ARC has devised a due diligence questionnaire which we believe covers all salient aspects of private client investment management. All investment managers with which ARC have a relationship must now complete this questionnaire, and update the information on a regular basis.

A full library of these questionnaires is available for free to all bone fide private clients advisers, upon registering with the ARC Research website (www.suggestus.com).